By World Economic Forum
• The digital world is facing a crisis with slowing internet growth and declining levels of trust that urgently need to be addressed
• 60% of global GDP is expected to be digitized by 2022, with very little distinction between the digital economy and the economy, or between digital society and society
• The Forum highlights six priority areas for action: Access and adoption, identity, positive societal impact, security, governance, and data
Geneva / San Jose / Tokyo, 10 December 2018 – Building a digital economy and society that is trusted, inclusive and sustainable requires urgent attention in six priority areas according to a new report, Our Shared Digital Future, published by the World Economic Forum.
The report represents a collaborative effort by business, government and civil society leaders, experts and practitioners. It follows an 18-month dialogue aimed at restoring the internet’s capacity for delivering positive social and economic development.
The report comes at a historic moment on the day when, for the first time, more than one-half of the world’s population is now connected to the internet. At the same time, less than one-half of those already online trust that technology will make their lives better.
With 60% of the global economy forecast to be digitized by 2022, there remains huge potential for the Fourth Industrial Revolution to lift more people out of poverty and strengthen societies and communities. However, success depends on effective collaboration between all stakeholder groups. The authors of the paper, in addition to unveiling six key areas for action, also highlight several existing efforts at global and local levels where collaboration is helping to restore trust and deliver broad-based societal benefits.
The six priority areas for multistakeholder collaboration identified in the paper are:
Internet access and adoption Internet access growth has slowed from 19% in 2007 to 6% in 2017. At the same time, we have reached the milestone of 50% of the world’s population being connected to the internet. To close the digital divide, more investment is needed to not only provide access, but also improve adoption.
Good digital identity By 2020, the average internet user will have more than 200 online accounts and by 2022, 150 million people are forecast to have blockchain-based digital identities. However, 1 billion people currently lack a formal identity, which excludes them from the growing digital economy. Good digital identity solutions are key to addressing this divide, empowering individuals, and protecting their rights in society.
Positive impact on society By 2022, an estimated 60% of global GDP will be digitized. In 2018, companies are expected to spend more than $1.2 trillion on digital transformation efforts. Yet, only 45% of the world’s population feel that technology will improve their lives. Companies need to navigate digital disruption and develop new responsible business models and practices.
Cybersecurity Cyberattacks result in annual losses of up to $400 billion to the global economy. More than 4.5 billion records were compromised by malicious actors in the first half of 2018, up from 2.7 billion records for the whole of 2017. A safe and secure digital environment requires global norms and practices to mitigate cyber-risks.
Governance of the Fourth Industrial Revolution Policy-makers and traditional governance models are being challenged by the sheer magnitude and speed of the technological changes of the Fourth Industrial Revolution. Developing new and participatory governance
mechanisms to complement traditional policy and regulation is essential to ensure widespread benefits, close the digital divide and address the global nature of these developments.
Data The amount of data that keeps the digital economy flowing is growing exponentially. By 2020, there will be more than 20 billion connected devices globally. Yet there is no consensus on whether data is a type of new currency for companies to trade or a common public good that needs stricter rules and protection. The digital economy and society must bridge this gap by developing innovations that allow society to benefit from data while protecting privacy, innovation and criminal justice.
“The digital environment is like our natural environment,” said Derek O’Halloran, Head, Future of Digital Economy and Society, the World Economic Forum. “We all – governments, businesses, individuals – have a duty to ensure it remains clean, safe and healthy. This paper marks a step forward in offering a blueprint for a better internet we can all work towards: One that is inclusive, trustworthy and sustainable.”
The paper is part of ongoing work by the World Economic Forum to provide a platform to accelerate, amplify or catalyse collaborative efforts from business, government, academia and civil society to advance progress towards an inclusive, trustworthy and sustainable digital economy. The paper provides an overview of key issues for the digital economy and society, establishes priorities for multistakeholder collaboration for the year ahead, and highlights existing key initiatives and resources. The issues explored in the paper can be found here.
“Our existing institutions, mechanisms and models are struggling to effectively respond to the pace of digital change and its distributed nature. This report identifies critical areas of focus for public-private partnerships to help restore trust in an inclusive and prosperous digital future,” said Jim Smith, Chief Executive Officer, Thomson Reuters and Co-Chair, World Economic Forum System Initiative on Shaping the Future of Digital Economy and Society.